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Pasco council signals support to pursue state manufacturing tax‑exemption map (TUA)
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Summary
Council members asked staff to prepare a targeted urban area (TUA) map and coordinate with Franklin County after a presentation on Washington’s 10‑year property‑tax exemption for qualifying manufacturing projects. Staff warned of administrative and software complexity but noted the incentive can attract major employers.
Deputy City Manager Miss Sigdell presented the Targeted Urban Area (TUA) tax‑exemption program, a Washington state tool that allows a 10‑year property‑tax exemption for qualifying new manufacturing construction that meets strict criteria (minimum 10,000 sq ft, at least $800,000 new value and creation of at least 25 jobs paying a defined livable wage).
Miss Sigdell explained the program’s potential benefits—construction sales tax revenue, job creation and a competitive tool to attract manufacturers—and its administrative challenges, including the need for county coordination and property‑tax software workarounds to segregate exempt manufacturing area from taxable office or land value.
Franklin County Assessor John Rosenau and Mandy Wallner, economic development manager for the City of Richland (which has used the program), joined staff to describe implementation considerations. Rosenau said the county has discussed software vendor changes and noted that implementing TUA frequently requires creating separate taxing districts or administrative parcel splits so exempted values can be tracked accurately.
Richland’s experience, Wallner said, showed TUA helped recruit large projects that otherwise might have located out of state; she said Richland had four qualifying projects and one completed project that is now receiving its exemption. The port and economic‑development leaders told the council the program can be an effective tool to compete for manufacturing sites.
Council members expressed general support for moving forward. "I think the time is now," one councilor said, urging the city to add economic development tools to its toolbox. Miss Sigdell said staff will prepare a proposed TUA boundary map, coordinate with Franklin County and return with the legal steps needed to implement the program.
Council did not vote on adoption at the workshop; staff will return with a map and recommended ordinance/resolution language and work with county partners to identify administrative steps and resource needs.
